Tax Credits

Endow Iowa Tax Credits

Endow Iowa tax credits provide an immediate, 5 to 1 leverage. For every $5 donated, tax payers can receive a $1 tax credit. Since the credits were created in 2003, more than 115 million has been invested by thousands of Iowans. The initial donations are used to create endowments that pay out 5 percent a year of spendable cash.

The Endow Iowa program was the brainchild of community leaders who recognized a decade ago that Iowa was on the cusp of a generational wealth transfer, particularly in rural Iowa. As older Iowans died, their estate would be distributed to children who had moved away, often out of state. Control over tremendous wealth in the form of farmland, small businesses and bank accounts, would leave Iowa, unless something was done to persuade older Iowans to keep some of that wealth in their home communities.

A law was passed in 2003 creating a 20 percent tax credit for Iowans who donate to qualified community foundations. Gifts started rolling in immediately, and the number of community foundations quickly grew. This credit has since grown to 25 percent and approximately $6 million in tax credits are available annually.

The Endow Iowa Tax Credit is awarded on a first-come, first-served basis for gifts made to a permanent endowment fund, established for the benefit of Iowa charitable causes, at a qualified community foundation. The tax credits can be claimed by individuals, businesses, or financial institutions. The program is administered by the Iowa Economic Development Authority; for more information please visit their website or contact us.